MOSCOW NARODNY BANK, LTD. The original Mos cow Narodny Bank (i.e., People's Bank) was the bank of the Russian Co-operative Movement bef ore the Revolution. It first established an agency in London in 1916. In 1919 this was trans formed into an English Company under the title of the Moscow Narodny Bank Ltd. with a paid up capital of £250,000. Sub sequent issues of capital have brought the authorized amount to 11,000,0o° sterling, of which £750,000 is now paid up. In addition, the reserve funds of the bank amount to £115,000. The shares of the bank are held exclusively by co-operative organisations in the U.S.S.R. The largest shareholders are the two leading co operative banks, i.e., the All-Russian Co-operative Bank (V seco bank) and the All-Ukrainian Bank (Ukrainbank) holding between them 73% of the shares; Centrosoyus, representing the Con sumers Co-operative Movement, holds 12.5% of the shares, and the Agricultural Co-operative Societies (Selosoyus), holding 12.5%. Smaller Co-operative Societies account for the 2% balance of the shares.
The balance sheet figures show the speed at which the Bank has developed its operations. The assets of the Bank on December 15, 1919, totalled £633,522, and on July I, 1928, they amounted to £7,287,550. In the year 1920 the turnover was approximately .119,000,00o. In the first ten months of 1928 it exceeded L220,000,000.
The principal purpose of the Moscow Narodny Bank is to finance the export and import operations of the Central Co-opera tive organisations in the U.S.S.R. trading on foreign markets. Besides performing the usual banking operations the Bank acts as a medium through which credits may flow to the co-operative organizations for financing their foreign trade. Such credits take the form of advances against goods in the course of export or stored abroad or in course of import into Russia, as well as the discounting of bills for the payment of purchases made abroad.
The bank also assists co-operative organizations in financing the collection of raw materials for export, partly from its own re sources and partly by discounting or rediscounting or guaranteeing bills drawn by the exporting co-operative organizations.
It is mainly concerned with the export of agricultural produce, i.e. dairy produce, butter, eggs, cheese, etc., furs, flax, hemp, tow, bristles, horse-hair, poultry, tobacco, skins and hides. The imports into Russia in which it is chiefly concerned are tea, wool, agricul tural machinery and implements, and tools of various kinds.
In addition to its offices in London the bank has offices in Paris, Berlin and a representative in New York. It holds a controlling interest in the Co-operative Transit Bank in Riga, through which Russian operations in Latvia are financed. It acts as the centre abroad through which the Russian co-operative organizations are brought into banking contact with leading banks in London, New York, Berlin, Hamburg, Paris, Belgium, Holland, Switzerland and Canada. It is naturally giving special attention to the development of its relations with the co-operative and labour banks in England, France, Germany, Belgium and Switzerland and with the labour banks in America. Though its share-holders are Russians, it is an English company subject in all respects to English law ; its chief offices are in London, and its main operations are carried on in sterling in accordance with British banking practice. (N. BA.)